The term "bottleneck" refers to
A)when increasing variable inputs must share a fixed amount of complementary input.
B)"fixity" of some factor
C)None of the above
D)Both a and b

Question

Quizplus · Accepted Answer

Option A refers to the concept of diminishing marginal returns where increasing input leads to lower output due to fixed inputs. Option B refers to the presence of fixed factors of production that limit the output level. Both these concepts lead to a bottleneck situation in the production process where output is limited due to the scarcity of a fixed input or factor. Therefore, the best choice is D as it includes both A and B as the possible meanings of bottleneck.

The Term "Bottleneck" Refers to